3 Stocks Pushing The Diversified Services Industry Downward

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 7 points (0.0%) at 16,563 as of Tuesday, Aug. 12, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,349 issues advancing vs. 1,605 declining with 179 unchanged.

The Diversified Services industry currently sits down 0.6% versus the S&P 500, which is down 0.1%. On the negative front, top decliners within the industry include 51job ( JOBS), down 8.5%, TeleTech Holdings ( TTEC), down 7.1%, Convergys Corporation ( CVG), down 6.4%, Shutterstock ( SSTK), down 2.9% and Air Lease ( AL), down 1.4%.

TheStreet would like to highlight 3 stocks pushing the industry lower today:

3. Ulta Salon Cosmetics & Fragrances ( ULTA) is one of the companies pushing the Diversified Services industry lower today. As of noon trading, Ulta Salon Cosmetics & Fragrances is down $1.95 (-2.0%) to $93.34 on light volume. Thus far, 209,359 shares of Ulta Salon Cosmetics & Fragrances exchanged hands as compared to its average daily volume of 889,400 shares. The stock has ranged in price between $93.23-$95.44 after having opened the day at $95.44 as compared to the previous trading day's close of $95.29.

ULTA Salon, Cosmetics & Fragrance, Inc. operates specialty retail stores in the United States. Its stores offer an assortment of branded and private label beauty products in cosmetics, fragrance, haircare, skincare, bath and body products, and salon styling tools. Ulta Salon Cosmetics & Fragrances has a market cap of $6.1 billion and is part of the services sector. Shares are down 1.3% year-to-date as of the close of trading on Monday. Currently there are 7 analysts that rate Ulta Salon Cosmetics & Fragrances a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Ulta Salon Cosmetics & Fragrances as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Ulta Salon Cosmetics & Fragrances Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

2. As of noon trading, SBA Communications ( SBAC) is down $0.55 (-0.5%) to $108.94 on average volume. Thus far, 415,405 shares of SBA Communications exchanged hands as compared to its average daily volume of 1.0 million shares. The stock has ranged in price between $107.99-$109.68 after having opened the day at $109.23 as compared to the previous trading day's close of $109.49.

SBA Communications Corporation owns and operates wireless communications tower structures, rooftops, and other structures that support antennas used for wireless communications in the United States and its territories, as well as in Canada, Central America, and South America. SBA Communications has a market cap of $14.3 billion and is part of the services sector. Shares are up 21.9% year-to-date as of the close of trading on Monday. Currently there are 11 analysts that rate SBA Communications a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates SBA Communications as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full SBA Communications Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

1. As of noon trading, Alliance Data Systems ( ADS) is down $4.89 (-1.9%) to $257.89 on light volume. Thus far, 139,670 shares of Alliance Data Systems exchanged hands as compared to its average daily volume of 550,600 shares. The stock has ranged in price between $256.76-$263.59 after having opened the day at $261.64 as compared to the previous trading day's close of $262.78.

Alliance Data Systems Corporation provides marketing and loyalty solutions in the United States, Canada, and other countries. Alliance Data Systems has a market cap of $14.6 billion and is part of the services sector. Shares are down 0.1% year-to-date as of the close of trading on Monday. Currently there are 12 analysts that rate Alliance Data Systems a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Alliance Data Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Alliance Data Systems Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you are interested in one of these 3 stocks, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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